The Central Bureau of Investigation (CBI) has submitted its findings on the cross-holding of shares of Essar in Loop telecom to its legal wing. This comes after it failed to reach a consensus with the Ministry of Corporate Affairs on this issue. The Ministry of Corporate Affairs had said that Essar held only 2.15 per cent stake in Loop telecom and not over 10 per cent, as alleged, when 2G licences were allotted.
It is believed that this issue had been referred to the Directorate of Prosecution as well, for its opinion. Further, if the CBI?s legal department concurs with the agency?s findings, CBI would issue a charge sheet. However, if there was a difference of opinion, the issue would be referred to the Ministry of Law and Justice for a final view on the issue.
Meanwhile, the Registrar of Companies (Mumbai) (RoC) has said, “The Essar Group, directly or indirectly, held only 2.15 per cent stake in Loop Telecom in 2007, which was when it submitted an application to the Department of Telecommunications (DoT) for a UAS licence”.
The RoC letter also said that the documents of the company did not substantiate an Associate relationship between the Essar Group and the Khaitan Group, as alleged.
Prior to this, the CBI has maintained that both the Essar Group and Reliance Communications held more than 10 per cent stake in Loop Telecom and Swan Telecom, when spectrum was allocated to them.
